Lockdown effect: In a month, auto registrations skid 28% in April

Our Bureau New Delhi | Updated on May 10, 2021

FADA says second wave hitting rural markets, too; timely onset of monsoon, the only hope

Auto registrations in  April skidded a whopping 28 per cent over March, as most States started imposed strict restrictions and local lockdowns to break the raging Covid second wave.

On a yearly basis, the total vehicle registrations  fell 30 per cent to 1,52,71,519 units in financial year 2020-21, the lowest in the last eight years, the Federation of Automobile Dealers Associations (FADA) said on Monday. In 2019-20, 2,17,68,502 vehicles were registered.

According to the monthly FADA report, all categories closed April on a low, with two-wheelers (down 28 per cent, three-wheelers (3W) by 43 per cent, passenger vehicles (PV) by 25 per cent, tractors 45 per cent and commercial vehicles (CV) 24 per cent month-on-month.

Rural markets also hit

The second wave has unsettled not just urban but also the rural markets. Recovery will take a longer time compared to the come back post the first wave, the industry association said.

In the two-wheeler category, 8,65,134 units were registered in April compared to 11,95,445 units in March. Similarly, PV registrations dropped to 2,08,883 units during the month  (2,79,745 in March).

Three-wheeler registrations declined to 21,636 units last month from  38,034 units in March. Tractor registrations at 38,285 units were also down in April from 69,082 units in March, the FADA report said.

“India is currently facing one of its toughest times with the second wave of Covid creating havoc in everyone’s life. This time, the spread is not only limited to urban markets but has also taken rural India in its grasp,” FADA president Vinkesh Gulati said.

Unlike last year, the restrictions and local lockdowns this time around have been imposed by State governments and not the Centre.


Financial relief sought

Due to this, there have been no relief announcements till now either by the Centre, the RBI or original equipment manufacturers (OEMs), he said.

FADA has requested the government to come up  with a financial package as was done last year. It has requested the RBI to issue guidelines/notifications for relaxation of loan repayment equivalent to the number of days of lockdown each State has announced. It also requested OEMs to not burden dealers with high billings in the States where a lockdown has been announced.

In the near term, overall, FADA  maintains absolute sluggishness for  May as most States have announced extension of curbs/lockdowns till the month-end.

In the long-term, the only ray of hope lies in the monsoon’s on-time arrival. This will also lead to rural markets recovering faster than urban and categories and tractors and two-wheelers getting a positive rub-off, FADA added.

Published on May 10, 2021

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